Nationwide mortgage coming to an end

viola_brandywine

Just wondering if anyone has paid off a Nationwide mortgage recently and knows what happens at the end. I have a balance of approx £3k left and was planning on making an overpayment from my savings to pay it all off.

I have noticed some people say they leave a balance of £1 so that they can borrow back again in the future. Is this something I need to request or will they offer?

Thanks.

MickHG

I have a mortgage with Nationwide that I paid off all but one Pound, that was some years ago, and something they offered to me. It was an option I was unaware of.
They keep the Mortage open, and keep the deeds, so if you need another mortgage it places you in a better position.
Obviously the people to speak to are Nationwide.
Mick

Regallion

We paid off our mortgage with Nationwide a couple of months ago.

Again, we left it with the nominal £1 as they said it would make getting another mortgage "easier" in the future.

Since then, our situation has changed and we're looking to move but need to re-mortgage to make it happen. Having talked to them on the phone I've been shown no evidence to suggest that it's easier at all!

Admittedly I was talking to one of their phone based mortgage "advisers" who can't actually advise you on anything so I think I need to talk to someone in a branch to make more sense of it.

Regallion

FYI, just had meeting with Nationwide mortgage advisor and walked out with an "in principle" lending certificate.

What's better is that because we kept the nominal £1 balance we get to keep Nationwide's Base Mortgage Rate (BMR) @ 2.50% over Bank of England instead of the Standard (SMR) of 3.99%.

So it does look like it's worthwhile keeping the nominal balance if you think there's a chance you may re-mortgage again.

Obviously, you'll need to apply your own circumstances to this - for the BMR you need to have had your mortgage prior to 2009.